With global demand for liquefied natural gas (LNG) rising, orders for LNG carriers, which had been declining since 2022, are expected to rebound. In the shipbuilding industry, there is growing speculation that Korean shipbuilders, which are expected to see concentrated LNG carrier orders from the United States in particular, will benefit.
According to the shipbuilding industry on the 16th, on the 8th (local time) Suhail Mohammed Al Mazroui, United Arab Emirates (UAE) Minister of Energy and Infrastructure, said, "Global market demand for natural gas far exceeds investment in production projects."
In June, Abu Dhabi National Oil Company (ADNOC), the UAE's state-owned oil corporations, said it will expand its annual LNG-related business scale to 20 million to 25 million tons by 2035 and increase energy investment in the United States over the next 10 years from $70 billion (about 103 trillion won) to $440 billion (about 648 trillion won).
A shipbuilding industry official said, "Inquiries from overseas shipowners about ordering LNG carriers have increased significantly due to rising demand for natural gas," adding, "We are focusing on securing orders as the business outlook is expected to continue improving."
According to Clarksons Research, next year's LNG carrier order forecast reaches 115 vessels. That is the highest since 2022, when a large replacement demand for LNG carriers emerged in Qatar and the total hit 181 vessels. Last year the figure was 93, and the year before it was 68.
The rise in LNG carrier demand is not limited to the Middle East, including the UAE. Following the United States, which is seeking to expand LNG exports under President Donald Trump, Europe and Africa are also expected to move to place orders for LNG carriers.
Georgios Plevrakis, head of Hanwha Ocean's Europe unit, said at the recent World LNG Summit & Awards in Türkiye, "Inquiries about LNG carrier orders in Europe are increasing noticeably," adding, "This trend will continue next year."
If the LNG carrier market revives, Korean shipbuilders appear poised to benefit the most. Only Korea and China can build LNG carriers, which are high value-added vessels, and the United States, where large orders are expected, is more likely to place them with Korean shipbuilders than with Chinese ones.
According to Clarksons Research, of the 18 newly contracted 174k-class LNG carriers through October this year, Korean shipbuilders won 16. The other two will also be built by Korean shipbuilders at the U.S. Philly Shipyard. China did not win a single order. Last year, Korea won 48 and China won 28.
Domestic shipbuilders have also recently been working to increase LNG carrier orders. Hanwha Ocean is pushing to sign an order contract for a 174,000-cubic-meter LNG carrier with Norwegian shipping company Knutsen. The vessel is scheduled for delivery in 2028.
An industry official said, "Starting next year, the LNG carrier sector is expected to drive earnings improvements for shipbuilders," adding, "Shipbuilding slots are fully booked through 2027, so orders placed next year will begin construction and delivery in 2028 or 2029."